Understanding the Role of a Commercial Insurance Broker: Compensation, Services, and Value Creation

A commercial insurance broker’s primary responsibility is to help businesses secure the right insurance coverage for their unique needs. So, if a broker can’t do that efficiently and with relative ease to their client, they’re simply not doing their job. While that should be the absolute minimum expectation, it’s unfortunately the selection criteria for many businesses that have had bad experiences in the past.

Insurance is a business of low barriers to entry and high earning potential. Meaning, the marketplace is flooded with insurance reps heavily soliciting your business with relatively little to bring to the table after that.

At Concierge Insurance Group, we raise the bar. We assume full responsibility for liaising between your company and the insurance marketplace, but we don’t stop there. You can expect a superior service that, frankly, shouldn’t be so rare in this industry.

Consider a few points:

1. We work off of commission: That’s right. When an insurance broker places a policy on behalf of your business, the insurance company pays them commission; oftentimes, unbeknownst to you. For most reps, this makes up a larger percentage of their total earnings than their salary. Is your current broker “earning” their commission? What value do they provide beyond simply placing coverage?
2. Brokers have more options for coverage: Unlike a direct agent who represents just one insurance company, brokers have access to a wide array of insurers. This means brokers can shop around to find the best combination of coverage and cost for your business. You’re not stuck with a single option; brokers provide you with choices. Seeing a predictable increase with your policy from a direct writer? Have you considered shopping the policy for carriers that may offer more competitive rates?
3. Carrier relations: When insurance brokers aren’t working with clients, they should be working with carriers. Like it or not, their relationship and reputation with carriers trickles through to the competitiveness of quotes they provide to you. Based on your relationship with your insurance rep, do you trust that they’re building and maintaining relationships with carriers that benefit and represent you?
4. Value creation: Commercial insurance is not just about unforeseen losses; it’s about elevating your business in a way that generates value. Whether this be policy management, regulatory guidance or industry expertise, it’s critical that your insurance rep have an understanding of the business impact of their job and own that role. Do you trust that they do?

If one or several of these considerations gave you pause, give us a call. We structure the work that we do around the realities of this business to advocate for our clients honestly and transparently. No exceptions.

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